CBRE now one of the world's largest property managers after acquiring competitor

"This is consistent with our strategy to have a more contractual revenue stream. We are not de-emphasizing brokerage. We are growing this business so we have more balance. Management of large commercial properties is a growing business as many companies want to get rid of their in-house real estate operations and other functions unrelated to their core business."

"Global Workplace Solutions had 14,000 employees who managed 1.2 billion square feet of property for clients in 75 countries. CBRE had an existing business of 24,000 employees managing 3.8 billion square feet. Last year, property management generated about $3.7 billion of the company's roughly $9 billion in gross revenue; GWS will add $3 billion."

"Everything is being outsourced these days. And a big company like CBRE can take advantage of economies of scale. CBRE is best known as a broker of sales and leases of commercial real estate such as offices, warehouses and shopping centers. It has been expanding its property management services to grow revenue and provide reliable income that is not dependent on real estate cycles."

CBRE Group Inc. acquired Global Workplace Solutions from Johnson Controls for approximately $1.5 billion, significantly expanding its property management operations. The acquisition combines CBRE's existing 24,000 employees managing 3.8 billion square feet with GWS's 14,000 employees managing 1.2 billion square feet across 75 countries. This strategic move reduces CBRE's dependence on commission-based brokerage revenue by adding $3 billion in property management revenue to the company's $9 billion gross revenue base. The expansion reflects industry trends toward outsourcing real estate operations, allowing CBRE to leverage economies of scale and serve diverse sectors including manufacturing, telecommunications, healthcare, and financial services.

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